Business

Kimball Hill seeks more time on recovery plan

Posted July 30, 2008 11:00 pm

Associated Press

Rolling Meadows-based Kimball Hill Inc., the second-largest U.S. home builder in bankruptcy, wants a 90-day extension through Nov. 19 to file a recovery plan.

Kimball Hill said it needs more time to develop an acceptable plan with creditors. Its exclusive right to submit a plan ends Aug. 21, the company said in papers filed yesterday in U.S. Bankruptcy Court in Chicago.

"Without exclusivity, the debtors' resources would no doubt be pulled in unproductive directions such that the value of the estates would quickly dissipate to the detriment of all creditors and parties in interest," Kimball Hill said.

The company sought protection April 23, citing tumbling demand for homes. The bankruptcy petition listed assets of $795.5 million and debt of $631.9 million as of Dec. 31.

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